Correlation Between Yamana Gold and NovaGold Resources
Can any of the company-specific risk be diversified away by investing in both Yamana Gold and NovaGold Resources at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Yamana Gold and NovaGold Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yamana Gold and NovaGold Resources, you can compare the effects of market volatilities on Yamana Gold and NovaGold Resources and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Yamana Gold with a short position of NovaGold Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yamana Gold and NovaGold Resources.
Diversification Opportunities for Yamana Gold and NovaGold Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Yamana and NovaGold is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Yamana Gold and NovaGold Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NovaGold Resources and Yamana Gold is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Yamana Gold are associated (or correlated) with NovaGold Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NovaGold Resources has no effect on the direction of Yamana Gold i.e., Yamana Gold and NovaGold Resources go up and down completely randomly.
Pair Corralation between Yamana Gold and NovaGold Resources
If you would invest 270.00 in NovaGold Resources on January 21, 2024 and sell it today you would earn a total of 40.00 from holding NovaGold Resources or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Yamana Gold vs. NovaGold Resources
Performance |
| Timeline |
| Yamana Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| NovaGold Resources |
Yamana Gold and NovaGold Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yamana Gold and NovaGold Resources
The main advantage of trading using opposite Yamana Gold and NovaGold Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yamana Gold position performs unexpectedly, NovaGold Resources can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NovaGold Resources will offset losses from the drop in NovaGold Resources' long position.| Yamana Gold vs. Agnico Eagle Mines | Yamana Gold vs. Wheaton Precious Metals | Yamana Gold vs. Newmont Goldcorp Corp | Yamana Gold vs. Kinross Gold |
| NovaGold Resources vs. Seabridge Gold | NovaGold Resources vs. Eldorado Gold Corp | NovaGold Resources vs. New Gold | NovaGold Resources vs. IAMGold |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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